ODTE Collar Strategy
ODTE (VegaShares SPX NDX RTY Premium Income ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
ODTE actively purses a covered call strategy using the S&P 500, Nasdaq-100 and Russell 2000 Indexes. The investment strategy utilizes a quantitative framework to actively adjust allocations and covered call exposure across the three indexes based on market volatility, liquidity and expected returns. Long exposure to the indexes is achieved either through direct investments, index-tracking ETFs, or synthetic positions created with deep in-the-money call options. The fund sells short-term, zero or one day-to-expiration, out-of-the-money index call options to collect premiums and distribute weekly income. While this approach offers current income, it also limits upside gains if the underlying indexes rise above the strike prices of the written options. The options utilized by the fund are listed on US exchanges or may include FLEX options.
ODTE (VegaShares SPX NDX RTY Premium Income ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.1M, a beta of 0.00 versus the broader market, a 52-week range of 24.81-27.46, average daily share volume of 4K, a public-listing history dating back to 2026. These structural characteristics shape how ODTE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.00 indicates ODTE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. ODTE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on ODTE?
A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot.
Current ODTE snapshot
As of May 15, 2026, spot at $27.13, ATM IV 60.10%, expected move 17.23%. The collar on ODTE below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.
Why this collar structure on ODTE specifically: IV rank is unavailable in the current snapshot, so regime-based timing for ODTE is inferred from ATM IV at 60.10% alone, with a market-implied 1-standard-deviation move of approximately 17.23% (roughly $4.67 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ODTE expiries trade a higher absolute premium for lower per-day decay. Position sizing on ODTE should anchor to the underlying notional of $27.13 per share and to the trader's directional view on ODTE stock.
ODTE collar setup
The ODTE collar below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ODTE near $27.13, the first option leg uses a $28.49 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ODTE chain at a 34-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 ODTE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $27.13 | long |
| Sell 1 | Call | $28.49 | N/A |
| Buy 1 | Put | $25.77 | N/A |
ODTE collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium.
ODTE collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ODTE. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
When traders use collar on ODTE
Collars on ODTE hedge an existing long ODTE stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
ODTE thesis for this collar
The market-implied 1-standard-deviation range for ODTE extends from approximately $22.46 on the downside to $31.80 on the upside. A ODTE collar hedges an existing long ODTE position with a protective put while financing the put cost via a short call; when the premiums roughly offset, the collar acts as a near-zero-cost insurance band around the current spot. As a Financial Services name, ODTE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ODTE-specific events.
ODTE collar positions are structurally neutral (protective); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. ODTE positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ODTE alongside the broader basket even when ODTE-specific fundamentals are unchanged. Always rebuild the position from current ODTE chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ODTE?
- A collar on ODTE is the collar strategy applied to ODTE (stock). The strategy is structurally neutral (protective): A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot. With ODTE stock trading near $27.13, the strikes shown on this page are snapped to the nearest listed ODTE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ODTE collar max profit and max loss calculated?
- Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the ODTE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 60.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ODTE collar?
- The breakeven for the ODTE collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current ODTE market-implied 1-standard-deviation expected move is approximately 17.23%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ODTE?
- Collars on ODTE hedge an existing long ODTE stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
- How does current ODTE implied volatility affect this collar?
- Current ODTE ATM IV is 60.10%; IV rank context is unavailable in the current snapshot.